@Mark Wurtemberg As a number's guy, I really appreciate you posting some real life income and expenses. 

The rents that the seller pays (discounted) are going to trip up trying to refinance out of hard money as any lender will use the lower amount to qualify thus cutting your loan down to be able to make the rents cover PITI.

No signing expensive leases that you personally guarantee typically. 

Therefore, it is very likely you will have to depreciate the expenses over a set period of time.

You can also get a lower rate on a 30 year fixed and even though its a 30 year loan there is No prepayment penalty so you can pay as much as you want but not obligated to pay more.A Heloc is a credit risk and can "never" be used as an asset or PITI reserve which is required when buying additional properties.

Upfront expenses and monthly payments must be considered when calculating the return on your investment.EXAMPLEI will provide details below, but here's the short version for those who hate to read or do math.

We will renovate the fix up the first floor additional dwelling and plan to rent it out as a STR for the rest of 1st year to maximize the return of our renovation expense against our W2 taxes via the Cost Seg / Bonus Depreciation.

We have since moved out, and the property is yielding just under a 50% cash on cash return after all expenses, vacancies, maintenance, and capx.Financed FHA 3.5%.

People are finally looking at ways to cut back on expenses and exorbitant housing cost is one of the first places that can significantly have an affect on one's budget.  

Also try tweaking things like deductible and replacement value to try to get premium lower.